Five Places to Find More Profits This

WeekA Practical Guide to Saving Money and

Building the Bottom Line for Study Group Members

Most companies focus on raw material or high-dollar expenses, yet good savings exist in routine purchases

Few companies define specific expense areas and systematically review supplier expenses

Creating a program of regular cost review by category, or using external consultants to help, can yield quick additions to the bottom line

Ben Franklin was wrong … a penny saved is worth 6 to 10 pennies earned

Facts of Life

Review Waste Disposal Contracts Review Merchant Services Contracts Review Utility Bills for Errors Review Cellular Bills for Savings Review Janitorial Supplies and

Paper Consumables

the savings can really add up!

Five Ways to Save Money Fast

Read contracts to determine expiration dates and termination notice required

Send letters to providers (certified mail) to announce intentions to rebid contract

Look for opportunities to consolidate multiple locations with one provider and seek multiple bids

Not recycling cardboard? It may be a revenue stream to offset waste costs

Target Savings – 8% to 15%

Review Waste Disposal Contracts

Review contracts for expiration dates Seek out multiple bids focused on

ancillary charges as well as base rate Look for providers with master

agreements from credit card companies rather than resellers

Target Savings – 10% to 15%

Review Merchant Services Contracts

Review electric and gas bills for accuracy of meters in use

Check for time of date tariffs for 24/7/365 locations to save money

Schedule reviews with utilities to analyze charges and rates in regulated states

Get bids from energy brokers in deregulated states if you haven’t already done so

Target Savings – 5% to 10%

Review Utility Bills for Errors

Review your bill for accuracy – ghost phones, unused features, unexplained charges all add big dollars to cost

Look for ways to optimize plans with current providers to reduce unneeded minutes and data plans

Consider flat reimbursement plan for employees needing phones

Try to consolidate carriers to drive bigger discounts

Target Savings – 15% to 35%

Review Cellular Bills for Savings

Compare prices with several resources and look for companies that can sell everything at a good price

Be sure to include office product suppliers in review

Think twice before buying these items from general line wholesalers

Be sure to standardize selections among all store locations

Great supplier consolidation play!

Target Savings – 10%-15%

Review Janitorial Supplies and Paper Consumables

Free initial analysis of spending to determine potential savings areas

We cover 35 expenses categories and have solid experience in c-stores

Savings are negotiated and ready to implement within 8-10 weeks

Fees are based on 45/55 split of results – no savings, no expenses

All purchases are audited every two month to document results

Typical Savings -- $1,500 to $4,000 per location

Plan B: Outsource Cost Control to Alliance Cost Containment

50+ locations in Midwest Major areas of savings included:

◦ 11% savings on Snow Removal◦ 16% savings on Vehicle Maintenance◦ 15% savings on Office Supplies◦ 16% savings on Employee Background

Checks◦ 23% savings on Telecom & Internet◦ 13% savings on Uniform T-Shirts

Total Savings Found -- $126,000 per year

Convenience Store Case Study

Millions saved for c-stores, including:◦ Daily’s – Nashville, TN◦ Huck’s – Carmi, IL◦ Thornton’s – Louisville, KY◦ Super Quik – Ashland, KY◦ Great Stops – Durham, NC◦ Patriot Oil – Green Bay, WI◦ MaxFuel – Hopkinsville, KY◦ Cheer’s – Paducah, KY◦ Family Express – Valparaiso, IN◦ plus many more

We Understand Your Business

Please contact us for a free initial savings analysis to see what we can do for you

Rudy F. Moeller, Jr. Vice President, Client Services Alliance Cost Containment 502-805-1274 office 859-576-8387 cell Rmoeller@alliancecost.com

For more information